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🇦🇺 Australia /Economy & Trade

NDIS spending cuts would see 240,000 people exit the scheme, inquiry told

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Australian National Disability Insurance Scheme (NDIS) faces proposed spending cuts that could lead to 240,000 people exiting the scheme.
  • Government modeling suggests a significant reduction in NDIS participants by 2031 compared to current projections.
  • The proposed changes aim to save over $30 billion in the next four years.

Proposed spending cuts to Australia's National Disability Insurance Scheme (NDIS) could result in an estimated 240,000 participants leaving the program over four years, according to government modeling. Health Minister Mark Butler previously stated that the NDIS overhaul would lead to 160,000 fewer people on the scheme by 2031 compared to today.

Basically, at that 2031 point the total number of people expected to exit the scheme is 240,000, the total number of people to be diverted is 110,000.

— Anthea LongThe first assistant secretary for Health, Disability and Ageing testified at a hearing about the projected impact of NDIS reforms on participant numbers.

Treasury modeling indicates that this figure is a combination of fewer new entrants and a substantial number of existing participants exiting due to the government's changes. While 190,000 people were expected to join the NDIS without changes, the government estimates 110,000 of those would be diverted under the overhaul. This would mean approximately 350,000 fewer people on the NDIS in five years than if no changes were made.

What that means is that the scheme was projected to have 940,000 people in 2031, and instead it would be 600,000.

— Anthea LongAnthea Long explained the projected reduction in NDIS participants under the proposed government changes.

Department first assistant secretary Anthea Long told a hearing that the projected number of people exiting the scheme by 2031 is 240,000, with 110,000 diverted. This would reduce the projected number of participants from 940,000 to 600,000 in 2031. However, Long stressed these were high-level assumptions not yet detailed by specific assessment thresholds. The government anticipates these changes will save more than $30 billion over the next four years.

We are convinced of course that the NDIS requires significant change to get it back on track.

— Jenny McAllisterDisability Minister Jenny McAllister commented on the necessity of reforms for the NDIS.

Disability Minister Jenny McAllister stated the government is committed to the reforms, emphasizing that the NDIS was not intended to be the sole support system for people with disabilities. While states outside Queensland have agreed to new support models in exchange for hospital funding, concerns remain about clearly defined alternate support arrangements for those exiting the NDIS. McAllister expressed confidence in the reforms, stating the government has considered them carefully and is awaiting the committee's report on public hearings to address any unintended consequences.

We've thought really carefully about these reforms.

— Jenny McAllisterMinister McAllister assured that the government had thoroughly considered the proposed NDIS reforms.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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